This book is a rich, panoramic story of four generations of Morgans and the powerful, secretive firms they spawned that would transform the modern financial world. Tracing the trajectory of J.P. Morgan's empire from its obscure beginnings in Victorian London to the financial crisis of 1987, the author paints a fascinating portrait of the family's private saga and the rarefied world of the American and British elite in which they moved, including Charles Lindbergh, Henry Ford, Franklin Roosevelt, Nancy Astor, and Winston Churchill. A compelling account of a remarkable institution and the men who ran it, this book provides a penetrating look at the real power -- the money -- behind the historical events, the eminent statesmen, and the industrial empires that have transformed the world in the last century and a half.
I highly recommend any book by Ron Chernow.
The book is "heavy". And not just physically - because it is a BIG book - but intellectually. I enjoy non-fiction, but this was a lot more dry than I prefer, and the detailed analysis of the characters surrounding the foundation of the bank and some of the financial dealings which helped it succeed just didn't hold my interest.
Maybe if I kept going, there could have been more "development" - but I gave up barely as the bank was founded. When I literally fell asleep in the middle of reading a page (something I virtually never do), I figured it was time to give up the ghost.
Quality writing for sure, but maybe a little too limited an audience for me.
This book traces the Morgan bank from its prehistory with George Peabody in 1839 England up until 1989, with the absorption of the British branch into Deutsche Bank and with the two American branches, Morgan Guaranty and Morgan Stanley, become competing colossi. Chernow does a great job of showing the coupling between the evolution of the bank(s) and the world.
A cornerstone of Darwin's evolutionary theory is that biological species are not universal eternal essences like the Platonic solids, but instead are historical accidents to the core. New structures arise spontaneously and are then pruned severely. This process of co-adaptation gives rise to a marvelous display of diverse capabilities.
It seems that money, accounting, finance, are very much the same sort of affair. The marketplace is a space where great creativity and powerful pruning are constantly at play. The resulting structures are constantly evolving and historical to the core.
To understand the detailed mathematical relationships behind underwriting or leveraged buy-outs - Chernow doesn't help us with that at all; he just sketches the coarsest skeletal structure. But the details are constantly changing! We would need a yearly new edition! But instead, Chernow gives us the history. Sure, it would be wonderful to carry the story forward from 1990. The decades following have surely given us escapades and fireworks to match those of the century and a half that Chernow covers. But Chernow's book is surely as useful today as when it was written. The past twenty years grew out of the preceding century. Chernow's book gives an excellent background to help anyone understand more recent events in the world of banking.
Chernow does a splendid job of fleshing out many key characters, the top banking executives and the star performers.
Reading this book changes how I see the world. It is a transformative work.
"The House of Morgan" is much more than the story of a banking house—it's the story of finance, the United States, and the world, over the past 150 years.
I can't hope to summarize a book of such monumental scope over the course of this review, so instead I'll offer some snapshots.
Did you know that the bankers of yore worked four-hour days and took three months of vacation a year? Instead of the mad rush of 100-hour work weeks and exhaustion-induced suicides commonplace over the past thirty or forty years in finance, banking used to be largely a leisurely and respectable field.
John Pierpont Morgan was actually third in a line of financiers laying the foundation for the J. P. Morgan. The first was British-American banker George Peabody. The second was Pierpont's father, Junius Spencer Morgan. Pierpont was essentially third-generation, so he had a significant head start and a lot of inherited privilege and wealth that made his venture possible! J. P. "Jack" Morgan Jr. was Pierpont's son, and oversaw the pinnacle of Morgan eminence.
J. P. Morgan & Co. was founded in 1971 and died in 1935 with the implementation of Glass-Steagall, which split commercial and "investment" banking. After that, remnants of the Morgan empire remained, but you can't really call them J. P Morgan & Co.
One of the most fascinating stories in the book is the parallel and eventually divergent careers of Tom Lamont (financier to Mussolini and enabler of WWII) and Hjalmar Schacht (German financier, and part of the resistance against Hitler). Basically it came down to the question of is there a point when keeping a friendship easygoing needs to be sidelined to uphold a certain set of ethics or values. Lamont said no when Hjalmar said yes.
Another fascinating fact: pretty much every government defaulted on their debt at some point during the timeline covered in the book; not just "developing" countries like Brazil, but also countries like Japan and Germany. Investors today seem to think of bonds as safe, but in the historical perspective, they don't look that safe...
The book becomes a little jumbled after the split of the bank, as there’s no longer one coherent storyline. Also, there isn’t really any analysis given at the end of the book.
Overall, I found the book fascinating, and would recommend it to anyone interested in the financial history of the United States.
My thirst for knowledge almost met its match in this extensive saga. However, I lead you all on to read this excellent account of the Morgan dynasty and of the aristocratic banker’s world. 750pp of continuous history from 1830 to 1990. A history of Bank “Panics” and international relations across wars and other international intrigue’s. However, this book allows one to connect the dots across 150 years of hard work and intrigue. This book gives a whole new meaning to “banker’s hour’s” with so much open intrigue and skull-doggery. A truly gripping account of real-life international financial and political maleficence. However, at this time we are left with the lily-white “JP Morgan-Chase” bank, sitting on 3 trillion US dollars in assets as the #1 US savings Bank. I highly recommend this first-rate account as established by Ron Chernow in 1989. Immediately Prior to this read, I imbibed another historical saga of Doris Goodwin’s “The Bully Pulpit”. One can never read too much history!
I had to give it up before I got through a third of it
From the reviews I would think it is excellent